Can an employer be vicariously liable for an employee's actions?

Ontario, Canada


The following excerpt is from Evans v. The Bank of Nova Scotia, 2014 ONSC 2135 (CanLII):

In Bazley v. Curry, 1999 CanLII 692 (SCC), [1999] 2 S.C.R. 534, at para. 37, the rationale for imposing vicarious liability on an employer was set out as follows: Underlying the cases holding employers vicariously liable for the unauthorized acts of employees is the idea that employers may justly be held liable where the act falls within the ambit of the risk that the employer's enterprise creates or exacerbates. Similarly, the policy purposes underlying the imposition of vicarious liability on employers are served only where the wrong is so connected with the employment that it can be said that the employer has introduced the risk of the wrong (and is thereby fairly and usefully charged with its management and minimization). The question in each case is whether there is a connection or nexus between the employment enterprise and that wrong that justifies imposition of vicarious liability on the employer for the wrong, in terms of fair allocation of the consequences of the risk and/or deterrence.

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